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5 things to watch on the ASX 200 on Thursday

Broker trading shares relaxing looking at screen

On Wednesday the S&P/ASX 200 Index (ASX: XJO) continued its impressive run and surged higher again. The benchmark index climbed 1.25% to 6,036.4 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise again.

It looks set to be another positive day of trade for the ASX 200 index. According to the latest SPI futures, the benchmark index is expected to rise 25 points or 0.4% at the open. This follows a particularly positive night of trade on Wall Street after President Trump brought COVID stimulus talks back to the table. In late trade the Dow Jones is up 2%, the S&P 500 is 1.8% higher, and the Nasdaq is climbing 1.9%.

Oil prices soften.

Energy shares including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) may come under pressure today after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$39.99 a barrel and the Brent crude oil price is down 1.35% to US$42.08 a barrel. Oversupply concerns were weighing on oil prices.

Gold price drops lower.

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price dropped lower. According to CNBC, the spot gold price has fallen 1% to US$1,889.0 an ounce. The prospect of a stimulus plan being agreed in the United States put pressure on the precious metal.

Dividends being paid.

A number of companies will be rewarding their shareholders with dividend payments on Wednesday. Among the companies making payments are logistics solutions company Brambles Limited (ASX: BXB) and leading appliance manufacturer Breville Group Ltd (ASX: BRG).

ASX Ltd shares rated as a sell.

The ASX Ltd (ASX: ASX) share price is overvalued according to one leading broker. A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $70.44 price target on the stock exchange operator’s shares. This follows the release of its September update. Goldman Sachs didn’t see anything to justify the premium its shares trade at and believes they are expensive at 33x estimated FY 2021 earnings.

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